Which of the following determines whether a firm will earn higher revenues when it raises its price?

Which of the following determines whether a firm will earn higher revenues when it raises its price?
A.Government regulation of the industry.
B.The price elasticity of demand.
C.The cost of the firm’s inputs.
D.None of the above, because companies always earn higher revenues when they increase price.
正确答案：The price elasticity of demand.